Did Nancy Pelosi cave on offshore oil drilling?

Tea-leaf reading may be an ancient Chinese art, but some of its most accomplished practitioners work from congressional offices in Washington, D.C.

Today they are parsing the speaker's words, trying to figure out whether Nancy Pelosi, in an interview last night with CNN's Larry King, opened the door to consideration of President Bush's proposal to lift the ban on offshore oil drilling.

Asked whether she would approve a package that included drilling, Pelosi at first said, "I would not." But then she added, "It depends how that is proposed, if the safeguards are there." To draw your own conclusion, read the transcript below.

Republicans who have been clamoring for an up-or-down vote on the issue -- protesting without benefit of lights or cameras on a deserted House floor while their colleagues are on vacation -- are wary.

"It is time for the book-selling speaker and her vacationing Democrat Congress to stop steeping the tea leaves and drinking the Kool-Aid," said Rep. Thaddeus McCotter of Michigan, chairman of the House Republican Policy Committee. His recommendation: "immediately reconvene Congress and have a real vote on unleashing American energy for Americans."

-- Johanna Neuman

Photo: Jim Watson  AFP/Getty Images

Larry King: OK, Madam Speaker, author of "Know Your Power," why don't you bring [Congress] back?

Speaker Nancy Pelosi: Well, it's interesting to hear Sen. [John] McCain talk about bringing Congress back. He wasn't even in Congress this last session when we really had two very important bills on energy -- one to give tax credit for wind, solar and other renewable resources, and another about hybrid cars and the rest. So he wasn't in to vote when were in session and now he's saying call it back in.

And then one of the others said to the president, call Congress back in. And the president said no. The president said no. But the point is this: The American people are suffering. We have to do what is best for them.

How do we bring down the prices at the pump? We have said to the president, the fastest way to do this if in 10 days the price can come down if you will free our oil. Over 700 million barrels of oil the president is sitting on of the Strategic Petroleum Reserve.

No. 1, free our oil.

No. 2, they want to drill. If they want to drill, we have 68 million acres in the Lower 48 that they can drill in that are permitted and all the rest.

Three, stop the speculation.

Four, renew -- invest in renewable energy resources, which will bring a faster return than drilling offshore, which will take 10 years and produce 2 cents' reduction in 10 years off the price at the pump.

And then use natural gas. Natural gas is so plentiful. It's better for the environment, and it is cheaper.

So there are things that Congress can do, and we have voted on this over and over again. But the Republicans and the president have resisted. Instead, they have this thing that says drill offshore in the protected areas. Well, we can do that. We can have a vote on that. But it has to be part of something that says we want to bring immediate relief to the public and not just a hoax on them.

King: Would you vote yes on a package that includes drilling?

Pelosi: I would not. It depends how the drilling is put forth. But I don't -- that is not excluded, let me say it that way. It depends how that is proposed, if the safeguards are there. Now, mind you, 68 million acres -- 10 million more acres in Alaska where they can drill.

But if there's -- if we can get some great things, in terms of renewable energy resources: a renewable electricity standard, wind, solar, biofuels and the rest in that context, because if you make a decision only to go with the offshore drilling, you are increasing our dependence on fossil fuels, and you will never free yourself of that addiction unless you invest in the renewable energy resources that are good for the environment, cheaper for the consumer and will reverse global warming.

And the consumer is our first responsibility. The American taxpayer owns this oil offshore, by the way. Let me make this one final point. This oil is owned by the American taxpayers. The oil companies drill. We give them money to drill there. But we get very little in return.

So I think as we have this debate, which is a very healthy one to have and I welcome it; we have to review and realign the relationship between our oil, Big Oil's profits and what it means to the consumer and the taxpayer.

King: Do you expect -- do you suspect the oil companies of having a lot of clout here, influence over the Republicans?

Pelosi: Of course. Yes, they rule. And that's what we'll find out.

King: They rule?

Pelosi: When we have this vote, when we really define it and where the choice is clear to the American people -- I mean, do you know what -- Exxon Mobil, their last quarter, their profits were historic. Last year, they were historic. They outdid themselves this year already in this second quarter. And they insist that we pay them to drill. They need an incentive to drill in order to make over $11 billion in one quarter. And it just doesn't make sense. We should be using that money to invest in renewable resources, tax credit for wind and solar, etc. and invest in the technologies that will develop the battery and the rest, instead of giving Big Oil more profits.

King: Do you expect to get a big enough majority in the Senate and House for the Democrats to overcome anything and get through your proposals?

Pelosi: Well, I hope we can do some of it before we even leave this session. I think we can -- hopefully, we can do something before December. I will not subscribe to a hoax on the American people that if you drill offshore, you're going to bring down the price at the pump. Even the president says that's not true.

Ten years, two cents -- we're saying 10 days, bring down the price, if the president would free our oil from the Strategic Petroleum [Reserve] -- from our stockpile -- owned by the taxpayers, purchased by the taxpayers.

In the next election, I know that we will strengthen our majorities, increase their numbers, and we will have a Democratic president in the White House, and we will be able to address more fully really what I think is the challenge to our generation -- energy security and global warming.